Earn 180% profit through nifty strategy

Discussion in 'Advanced Trading Strategies' started by rajgiri21, Jul 14, 2012.

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How would u rate this idea?

  1. Worst crap!!!

    31.0%
  2. Quite normal!!!

    29.3%
  3. Goood!!!

    29.3%
  4. Excellent!!!

    10.3%
  1. rajgiri21

    rajgiri21 New Member

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  2. rajgiri21

    rajgiri21 New Member

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    Dear Dan,

    Thanx alot for the time u have spent on my post!!! I have seen ur replies on other threads as well and u seem to have a lot of experience!!

    I am an active trader as well and i sit in front of the terminal!! So i thought the moves of nifty futures can be controlled by me and all i need to do is sell when it goes below 5200 and buy back again if it crosses 5200!!! Other volatility etc was ignored by me coz on expiry everythg will go off and the actual premium remains!!! This is how i thought!!

    And i agree with you that doing it practically will not be as easy as it looks and as u said everybody knows this and they r unable to do it!! So i have not made any gr8 innovation here and tatz the same reason why i posted it here!!!

    Technically if it seems ok then i wil try n implement it as best as possible!!!

    Pls let me know if anythg needs to be added othr than selling nifty once it breaks 5200 on the downside and buying it back once it reaches 5200 on the upside!!!

    I have initiated this as mentioned above in post!! Wil let u know if i made any profits or any hurdles which i face!!!

    Thanks again!!!
     
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  3. rajgiri21

    rajgiri21 New Member

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    Dear Timepass,

    Yeah exactly!!! thatz how i believe it!!! I wil end up in loss only if nifty expires below 5100!! tat too can be avoided if i sell nifty @5200!!! Thanx!!!
     
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  4. gunsho

    gunsho Well-Known Member

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    I wasn't doing covered call. What I did was Short Straddle + long/short above/below strike price, more or less the same. In a different way to see it, covered call above strike price. covered put below strike price + one leg on the opposite side. This way, aim is to keep the premium completely with us. Whichever leg is loosing, future will cover it.

    Few months, we get chance to purchase protective legs (when it goes up and down the strike prices considerably), purchase strike price+100 put/call at a discounted rate. Leading to nothing but a profitable Iron Condor. Apart from this, nothing at least occurred to my mind to add/change :) Do en-light us, if there is something more is hidden ;)

    Hedging wasn't the challenge I faced. For me maintaining the future trade was the challenge. Wish to learn the same...
     
    Last edited: Jul 14, 2012
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  5. rajgiri21

    rajgiri21 New Member

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    Dear Gunsho,

    Thanx!! Yeah exactly i am interested only in d time premium!!! I have initiated this idea yesterday so i would let u know the pros n cons!!

    May be staying above n below a round number in d nifty can be a challenging task!! So even i would take tat 30 points wat is mentioned in linkon 7... but then it can again be like market goes up n down around tat level like wat it has happened how @ 5250 or 5280 levels!!!

    But we have 100 points to play for and even if we lose 30-40 points towards this risk still it will be a profitable trade!!!

    Still looks clean in paper should try n see!!! lets see!!!

    :)
     
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  6. DanPickUp

    DanPickUp Well-Known Member

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    Dear rajgiri21

    Deleted the rest of the post as Gunsho has already posted one idea.

    Crossover from just one idea.

    DanPickUp
     
    Last edited: Jul 14, 2012

  7. rajgiri21

    rajgiri21 New Member

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    Dear Dan,

    Yup!! Many ppl have discussed abt adding a put option in this strategy which i always fely confused!! May be am not tat knowledgeable or i felt convinced thr is nothg to add to this as looks very simple!!!

    But pls throw some light why ppl wat to buy a put option in this!!! Does tat make it more riskier as its more like staying short in nifty???

    Thanks!!
     
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  8. gunsho

    gunsho Well-Known Member

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    The idea is good Giri :). Not doubt about it. And there will be months where we market will have less whipsaws. To reduce that, we can pick this strike price when it is bouncing back from a good resistance or up from support. 100 points is less or more, depends on the time frame we are planning to watch/trade. I am sure we will learn something from this thread.

    Humble request to change the title, if you are ok. Cause that is not the main goal for any of us I believe :).
     
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  9. rajgiri21

    rajgiri21 New Member

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    Dear Dan,

    Thanks!!! Yeah if i sell a put i wil be getting the premium of tat as well!!! But again does tat increase my risk?? coz as it looks my call n put will give me the total time premium of both the options!! But why would i need a nifty future then wont i make loss in that or is tat covered??

    Sorry if am found naive, am a bit new to these hedging strategy n all!!
     
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  10. gunsho

    gunsho Well-Known Member

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    Giri, you will find answers in below post. Nicely explained with pictures.

    http://www.traderji.com/futures/41903-target-500-nifty-points-per-month.html#post443841
     
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